Investing.com - The euro rose against the pound on Wednesday, reversing earlier losses sustained after better-than-expected manufacturing figures published in the U.K.
In Asian trading on Wednesday, EUR/GBP hit 0.7899, up 0.06%, gaining from a session low of 0.7895 and even with a high of 0.7900.
The pair was likely to test support at 0.7893, the low from July 10, and resistance at 0.7934, the high of July 10.
The U.K. Office for National Statistics reported earlier that manufacturing production rose 1.2% in May after contracting 0.8% in April.
The figures beat market calls for a gain of 0.1%.
U.K. industrial output, a broader measure includes energy production and mining, rose 1.0% in May after contracting 0.4% in April.
The market had forecast a 0.2% contraction.
The figures sent the pound rising against the euro, though profit-taking reversed that trend in Asia on Wednesday.
The euro saw some support from a meeting of eurozone finance ministers, where policymakers decided to allocate EUR30 billion in aid for Spain to prop up its banking sector by the end of the month.
Eurozone finance ministers also approved plans to give Spain an extra year to meet deficit-reduction targets, with the deadline now set at 2014.
However, the group has yet to give eurozone bailout funds the green light to invest in Spanish and Italian bond auctions, which kept borrowing costs high in those countries and further kept the euro at bay against other currencies.
The pound, meanwhile, was up against the dollar and flat against the yen, with GBP/USD gaining 0.08% and trading at 1.5531 and GBP at 123.27.
U.S. data will move markets later Wednesday.
The U.S. is to release official data on its trade balance, its latest figures on crude oil stockpiles, and later, the minutes of the Federal Reserve’s most recent monetary policy meeting.
In Asian trading on Wednesday, EUR/GBP hit 0.7899, up 0.06%, gaining from a session low of 0.7895 and even with a high of 0.7900.
The pair was likely to test support at 0.7893, the low from July 10, and resistance at 0.7934, the high of July 10.
The U.K. Office for National Statistics reported earlier that manufacturing production rose 1.2% in May after contracting 0.8% in April.
The figures beat market calls for a gain of 0.1%.
U.K. industrial output, a broader measure includes energy production and mining, rose 1.0% in May after contracting 0.4% in April.
The market had forecast a 0.2% contraction.
The figures sent the pound rising against the euro, though profit-taking reversed that trend in Asia on Wednesday.
The euro saw some support from a meeting of eurozone finance ministers, where policymakers decided to allocate EUR30 billion in aid for Spain to prop up its banking sector by the end of the month.
Eurozone finance ministers also approved plans to give Spain an extra year to meet deficit-reduction targets, with the deadline now set at 2014.
However, the group has yet to give eurozone bailout funds the green light to invest in Spanish and Italian bond auctions, which kept borrowing costs high in those countries and further kept the euro at bay against other currencies.
The pound, meanwhile, was up against the dollar and flat against the yen, with GBP/USD gaining 0.08% and trading at 1.5531 and GBP at 123.27.
U.S. data will move markets later Wednesday.
The U.S. is to release official data on its trade balance, its latest figures on crude oil stockpiles, and later, the minutes of the Federal Reserve’s most recent monetary policy meeting.